The arrival of spring means the start of many new construction projects. Few industries carry as many risks as construction. Hazards like fire, property damage, personal injury and a host of others leave business owners exposed to serious liabilities on every job they tackle. Thankfully contractors’ insurance is an affordable security measure that will keep you and your workers safe. Unintentional damage or injury you or your workers cause to a third party can all be covered by protections offered under your policy.
It is important to note that contractor’s insurance is not standard. Many factors like your location, the size of your business, your history of claims, and the nature of the jobs you tackle will affect what you pay in premium.
As a general rule of thumb, the smaller your business and the fewer employees you have, the less you will pay in premium. As an example, for one million dollars in liability coverage that protects your tools and equipment, premiums can start at the low rate of just $67 per month.
The Nature Of The Work
Electricians, plumbers, builders, and landscapers each face different risks and hazards on a given day. Some general guidelines that affect premium include:
o Working at high altitudes
o Working with water sources
o Working on train tracks or near the airport
o Working underground
o Working demolition jobs
o Working with toxic materials
While this is not a complete list, it can give you a general sense of the ways premium can fluctuate. This is all important information to have before getting a quote from a broker.
Are you doing work in an area with a higher or lower crime rate? An area where weather or geographical conditions leave you exposed to more perils? If so your premium will fluctuate accordingly.